It was the spring of 2004. I was Director of Public Works for the City of Memphis and I was asking the Memphis City Council to raise sewer fees. I was not getting a welcome reception on that issue.

It had been 22 years plus since the last sewer fee increase. The City of Memphis enjoyed what was easily the lowest sewer fees of any major city in the country. One Wall Street bond rating agency called Memphis sewer fees "breathtakingly low".

Despite the very low sewer fees, the city's wastewater treatment plants were running well and the wastewater collection system had experienced major operational improvements. None of this seemed to matter to City Council. Nevertheless the request for a much needed sewer fee rate increase was ultimately approved.

Sometimes history has a way of repeating itself.

This winter, I asked the Memphis City Council to approve modest rate increases for Memphis Light, Gas and Water (MLGW) in both the Electric and Gas Divisions.

Although wholesale energy cost changes are passed directly through to MLGW customers, there has been no electric or gas rate increase internal to the MLGW operating budget in 14 years and 10 years, respectively. MLGW's combined utility rates (electric, gas and water) have been the lowest of any major city for five consecutive years.

The request for electric and gas rate increases, just like the 2004 experience, has not received a welcome reception. At most utilities, similar modest rate increases would be considered normal and would be approved with little fanfare. Such is not the case in Memphis.

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December 19, 2017 - Jerry Collins, president and CEO, Memphis Light, Gas and Water, listens to a citizen speak during a City Council meeting on Tuesday. Memphis City Council members are expected to vote on proposed MLGW rate hikes.(Photo: Yalonda M. James/The Commercial Appeal)

What is different about Memphis? It is not normal for a city to go 22 years without a sewer fee increase. It is not normal for a city to go 14 years without an electric rate increase. It is not normal for a utility to go 10 years without a gas rate increase.

It is not normal for a city to have the lowest utility rates in the country year after year. It is not normal for a utility to have to get approval for a rate increase from both a board and a city council. It is not normal for a city to have as much poverty as Memphis has. It is not normal for a utility to have as much utility theft as MLGW experiences. It is not normal for a utility to have as much uncollected debt as MLGW.

Despite the many financial obstacles MLGW has persevered. MLGW is aggressively employing the latest technology in order to reduce operating costs, provide a higher level of service, battle utility theft and to restore power after storms faster.
MLGW customers are able to enjoy the best quality drinking water in the country from treatment facilities that are undergoing major renovations.

MLGW has addressed the poverty issue by continually modifying its payment and credit policies. The current payment and credit policy is now one of the most liberal in the country. This allows more customers to keep their lights on despite the financial obstacles they may be experiencing on a personal level.

Record amounts of money are being raised through Plus-One to help customers pay their utility bills. Share-The-Pennies will provide a significant amount of new funds to help make low income homes more energy efficient.

MLGW is likely the only utility in the country that has a rental ordinance that allows the utility to require rental properties to meet certain energy efficiency standards. MLGW helps promote the local economy by having a supplier diversity program that is the gold standard in Tennessee.

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MLGW lineman Barry Storey repairs a downed power line on Avalon Street after remnants of Hurricane Harvey left thousands without power.(Photo: Jim Weber/The Commercial Appeal)

MLGW is currently reinvesting in its infrastructure at a very healthy rate, but this needs to continue. A lack of funding will result in decaying infrastructure, more debt, higher interest rates on borrowed money, and less reliability.

This would put Memphis/Shelby County in a disadvantage as it tries to compete with other cities for industrial growth and more jobs. Decaying infrastructure will make Memphis/Shelby County a less attractive place to live. I do not want to see our city and our county fall into decay.

I am a Memphian and an MLGW customer. I was born here. I was educated here. I live here. I will continue to live here. I have pride in my city. I want Memphis to excel. By nature I am competitive. I want Memphis to not only excel, I want Memphis to be the best. I want Memphis to be the envy of every other city. Why should we be willing to settle for anything less?

The employees of MLGW are wonderful people. They are dedicated, intelligent, and they go the extra mile to take care of our customers. They give generously of their own money to many different charities.

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May 31, 2017 - MLGW employees Matthew "The Dip" Depadova and Robert Fatimer (not pictured) work on power lines on Point Church Ave. in Frayser on Wednesday afternoon. A storm swept through Memphis late on Saturday night causing thousands of MLGW customers to be without power.(Photo: Yalonda M. James/The Commercial Appeal)

On a daily basis I receive far more complements about the good work of our employees than I receive complaints. When the temperature is 100 degrees they are working hard to keep you cool. During the recent bitter cold weather they were outside in the weather working to keep you warm.

The employees of MLGW are not just good people, they are experts in what they do. The abilities of our engineers, linemen, accountants, technicians, etc., are unsurpassed. They are honest and trustworthy. The employees of MLGW are dedicated to the ideal of providing our customers with the level of service they deserve at the lowest possible cost. They have accomplished some amazing things.

As MLGW moves forward, as we embrace the next President/CEO, J.T. Young, I encourage everyone, including City Council, to put more trust in MLGW and its employees.

I encourage the community to have faith in MLGW. At worst you will still have nearly the lowest utility rates in the country, if not still the absolute lowest rates.

Jerry Collins, who retired last week, was MLGW's president and CEO from 2007-2018.